Question Period Note: 2026-27 MAIN ESTIMATES – OVERVIEW

For what purpose is $6.3 billion being sought by the Canada Revenue Agency in the 2026-27 Main Estimates? Why is there a $4.1 billion decrease over the previous year?

The Canada Revenue Agency administers tax, benefits, and related programs, and ensures compliance on behalf of governments across Canada, thereby contributing to the ongoing economic and social well‑being of Canadians.

Total funding:
The Agency is seeking $6.3 billion through the 2026-27 Main Estimates. Of this amount, $4.8 billion requires approval by Parliament whereas the remaining $1.4 billion represents statutory forecasts already approved under separate legislation.

Decrease:
The Agency's 2026-27 Main Estimates are $4.1 billion lower than last year.

Of this amount, $4.2 billion is related to a reduction in the statutory forecast of fuel charge proceeds to be returned to the province or territory of origin. This reflects the removal of the federal fuel charge effective April 1, 2025 and the winding down of the proceeds return mechanisms.

Additional decreases are due to a reduction or sunsetting of funding to implement and administer various measures announced in the federal budgets and economic statements, including for contact centres and the temporary Goods and Services Tax / Harmonized Sales Tax break. It also reflects the ramping up of the CRA’s contribution to the Refocusing Government Spending measures.

These decreases are partially offset by incremental funding to combat tax evasion as well as administer tax fairness measures for global corporations and clean economy investment tax credits announced in the 2025 federal budget.

Reductions associated with Comprehensive Expenditure Review savings announced in Budget 2025 have also been reflected in the 2026-27 Main Estimates, however a portion of these savings will be reinvested in the CRA to improve services, strengthen compliance, and reduce tax debt.

Each year, the government prepares Estimates in support of its request to Parliament for the authority to spend public funds. This request is formalized through the introduction of appropriation bills in Parliament. The Main Estimates, which directly support the Appropriation Act, contain detailed information on the spending authorities by vote being sought by each department and agency. Parliament will be asked to approve these votes to enable the government to proceed with its spending plans.

Statutory items are expenditures authorized under separate legislation. As they are already approved by the statute, they do not require further approval, nor can they be altered by Parliament. They are identified in the Estimates and are included for information purposes only.

Total funding:
The CRA’s 2026-27 Main Estimates will display an amount of $6,274M ($4,848M in voted appropriations and $1,426M in statutory).

Decrease:
The CRA’s 2026-27 Main Estimates reflect a net decrease of $4,102M from the previous year’s total Main Estimates. Of this amount, $4,162M is related to a decrease in the estimate of fuel charge proceeds to be returned to the province or territory of origin. This reflects the removal of the federal fuel charge effective April 1, 2025 and the winding down of the proceeds return mechanisms.

The balance of $60M represents an increase of 1% from the 2025-26 Main Estimates and is explained as follows:

The CRA budget increases of $408M are due to:
- $97M to administer additional measures to combat tax evasion;
- $90M for Comprehensive Expenditure Review reinvestments (Budget 2025);
- $51M associated with the adjusted cost of the administration of the GST by the Province of Quebec;
- $50M in contributions to employee benefit plans;
- $40M to administer tax fairness measures for global corporations (Budget 2025);
- $28M adjustment in payments under the Children's Special Allowance Act;
- $27M for compensation adjustments; and
- $25M to administer the clean economy investment tax credits (Budget 2025).

The above-mentioned increases are partially offset by the decreases totalling $348M due to:
- $90M for Comprehensive Expenditure Review savings (Budget 2025);
- $78M for the sunsetting of funding for contact centres (Budget 2024);
- $54M for the administration of the temporary GST/HST holiday;
- $51M for the Refocusing Government Spending measures (Budget 2023);
- $30M in the spending of revenues received through the conduct of the CRA's operations, primarily attributable to the administration of pandemic measures on behalf of Employment and Social Development Canada;
- $22M for the sunsetting of funding for the administration of the first home savings account; and
- $21M net adjustment in funding for various other initiatives.

Please note that amounts may not add due to rounding.

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